MCGRAW HILL, INC. (MH) FY2027 Q1 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-04-01 to 2026-06-30

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MCGRAW HILL, INC. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income (loss) → Net cash from operating activities: $601,000.00Net income (loss) → Operating adjustments reconciliation: $57,259,000.00Amortization of intangibles → Operating adjustments reconciliation: $53,500,000.00Other current liabilities → Operating adjustments reconciliation: $42,342,000.00Amortization of capitalized contract costs - Deferred Royalties → Operating adjustments reconciliation: $38,039,000.00Depreciation (including amortization of technology costs) → Operating adjustments reconciliation: $16,348,000.00Amortization of product development costs → Operating adjustments reconciliation: $13,628,000.00Inventories → Operating adjustments reconciliation: $7,864,000.00Amortization of capitalized contract costs - Deferred Commission Costs → Operating adjustments reconciliation: $7,655,000.00Inventory obsolescence → Operating adjustments reconciliation: $3,958,000.00Stock-based compensation → Operating adjustments reconciliation: $3,884,000.00Amortization of debt discount → Operating adjustments reconciliation: $3,166,000.00Amortization of deferred financing costs → Operating adjustments reconciliation: $1,222,000.00Deferred income taxes → Operating adjustments reconciliation: $255,000.00Operating adjustments reconciliation → Deferred revenue: $149,389,000.00Operating adjustments reconciliation → Accounts payable and accrued expenses: $63,566,000.00Operating adjustments reconciliation → Accounts receivable: $18,041,000.00Operating adjustments reconciliation → Prepaid and other current assets: $16,360,000.00Operating adjustments reconciliation → Credit losses on accounts receivable: $1,251,000.00Operating adjustments reconciliation → Other changes in operating assets and liabilities, net: $513,000.00Net cash used in investing activities → investing reconciliation: $58,289,000.00investing reconciliation → Product development expenditures: $34,360,000.00investing reconciliation → Capital expenditures: $23,929,000.00Net cash used in financing activities → financing reconciliation: $3,150,000.00Exercise of stock options → financing reconciliation: $1,827,000.00financing reconciliation → Payment of A&E Term Loan Facility: $3,293,000.00financing reconciliation → Payment of finance lease obligations: $1,684,000.00Exchange-rate effect → Cash sources and uses: $956,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $253,519,000.00Net cash from operating activities → Cash sources and uses: $601,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $193,637,000.00Cash sources and uses → Net cash used in investing activities: $58,289,000.00Cash sources and uses → Net cash used in financing activities: $3,150,000.00Net income (loss): $57,860,000.00Net income (loss)+$57.86 MDepreciation (including amortization of technology costs): $16,348,000.00Depreciation expense+$16.35 MAmortization of intangibles: $53,500,000.00Intangible amortization+$53.50 MAmortization of product development costs: $13,628,000.00Product development amort.+$13.63 MAmortization of capitalized contract costs - Deferred Commission Costs: $7,655,000.00Deferred commissions amort.+$7.66 MAmortization of capitalized contract costs - Deferred Royalties: $38,039,000.00Deferred royalties amort.+$38.04 MStock-based compensation: $3,884,000.00Stock-based compensation+$3.88 MCredit losses on accounts receivable: -$1,251,000.00Credit loss provision−$1.25 MInventory obsolescence: $3,958,000.00Inventory write-downs+$3.96 MDeferred income taxes: $255,000.00Deferred income taxes+$255.00 KAmortization of debt discount: $3,166,000.00Discount & premium amortization+$3.17 MAmortization of deferred financing costs: $1,222,000.00Debt issuance cost amortization+$1.22 MAccounts receivable: -$18,041,000.00Accounts receivable−$18.04 MInventories: $7,864,000.00Inventories+$7.86 MPrepaid and other current assets: -$16,360,000.00Prepaid & other assets−$16.36 MAccounts payable and accrued expenses: -$63,566,000.00Payables & accrued liabilities−$63.57 MDeferred revenue: -$149,389,000.00Deferred revenue−$149.39 MOther current liabilities: $42,342,000.00Other current liabilities+$42.34 MOther changes in operating assets and liabilities, net: -$513,000.00Other working capital, net−$513.00 KNet cash from operating activities: $601,000.00Operating cash+$601.00 KOperating adjustments reconciliation: $249,120,000.00Payment of A&E Term Loan Facility: -$3,293,000.00Secured debt repaid−$3.29 MPayment of finance lease obligations: -$1,684,000.00Finance lease payments−$1.68 MDeferred Initial Public Offering costs: $0.00Exercise of stock options: $1,827,000.00Stock option exercises+$1.83 MNet cash used in financing activities: -$3,150,000.00. Cash required to fund net payments.Financing cash−$3.15 Mfinancing reconciliation: $4,977,000.00Product development expenditures: -$34,360,000.00Product development expenditures−$34.36 MCapital expenditures: -$23,929,000.00PP&E purchases−$23.93 MNet cash used in investing activities: -$58,289,000.00. Cash required to fund net payments.Investing cash−$58.29 Minvesting reconciliation: $58,289,000.00Cash sources and uses: $255,076,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $253,519,000.00Beginning cash$253.52 MEnding cash: Cash, cash equivalents, and restricted cash: $193,637,000.00Ending cash$193.64 MExchange-rate effect: $956,000.00FX effect+$956.00 KCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow−$23.33 MOperating cash − cash spent on PP&ECash flow / Net income0.01×Operating cash flow ÷ net incomeNet cash change−$59.88 MEnding cash − beginning cash
Chart details

MCGRAW HILL, INC. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026

Cash flows for Apr 1, 2026 through Jun 30, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Mar 31, 2026. Ending cash: Jun 30, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Mar 31, 2026
253,519,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
601,000 US dollars. Net cash provided.
Net income (loss)
57,860,000 US dollars
Depreciation (including amortization of technology costs)
16,348,000 US dollars
Amortization of intangibles
53,500,000 US dollars
Amortization of product development costs
13,628,000 US dollars
Amortization of capitalized contract costs - Deferred Commission Costs
7,655,000 US dollars
Amortization of capitalized contract costs - Deferred Royalties
38,039,000 US dollars
Stock-based compensation
3,884,000 US dollars
Credit losses on accounts receivable
negative 1,251,000 US dollars
Inventory obsolescence
3,958,000 US dollars
Deferred income taxes
255,000 US dollars
Amortization of debt discount
3,166,000 US dollars
Amortization of deferred financing costs
1,222,000 US dollars
Accounts receivable
negative 18,041,000 US dollars
Inventories
7,864,000 US dollars
Prepaid and other current assets
negative 16,360,000 US dollars
Accounts payable and accrued expenses
negative 63,566,000 US dollars
Deferred revenue
negative 149,389,000 US dollars
Other current liabilities
42,342,000 US dollars
Other changes in operating assets and liabilities, net
negative 513,000 US dollars
Investing activities
negative 58,289,000 US dollars. Net cash used.
Product development expenditures
negative 34,360,000 US dollars
Capital expenditures
negative 23,929,000 US dollars
Financing activities
negative 3,150,000 US dollars. Net cash used.
Payment of A&E Term Loan Facility
negative 3,293,000 US dollars
Payment of finance lease obligations
negative 1,684,000 US dollars
Deferred Initial Public Offering costs
0 US dollars
Exercise of stock options
1,827,000 US dollars
Operating adjustment reconciliation
249,120,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
4,977,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
58,289,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
956,000 US dollars
Ending cash on Jun 30, 2026
193,637,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
255,076,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 59,882,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
0.01×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
601,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
23,929,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
negative 23,328,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income exceeds operating cash. The diagram allocates $601.00K of net income directly to operating cash and $57.26M to the adjustment junction, where it combines with other additions to reconcile deductions. This is an accounting presentation, not a tracing of cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 601,000 US dollars minus 23,929,000 US dollars equals negative 23,328,000 US dollars.
MCGRAW HILL, INC. (MH) FY2027 Q1 Statement of Cash Flows Sankey chart
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